Bank of Nova Scotia cut the pay of its CEO in 2008, while Royal Bank of Canada CEO Gordon Nixon turned down much of his pay package. Both banks released their proxy circulars on Monday.

Scotiabank CEO Rick Waugh will receive $7.5 million in salary, bonus and other compensation. That amount also includes a $1.17 million deduction for for a pension adjustment. Waugh’s total pay package for 2007 was $10.1 million.

Royal Bank said Nixon was awarded $8.75 million in total compensation, down 20% from his 2007 pay package of $10.9-million.

The bank added that Nixon informed the board of directors of his personal decision to forego his 2008 mid-term and long-term compensation, which represents the majority of his variable compensation for 2008.

“Nixon will voluntarily forfeit both the mid-term incentive compensation and long-term incentive
compensation awarded in December 2008. For the year ended Oct.31, 2008, Nixon was awarded Performance Deferred Share Units valued at $2.75 million, as in prior years, and stock options valued at
$2.2 million, down 20% from 2007. Nixon was also awarded short-term incentive compensation of $2.4 million, down 40% from the prior year,” the bank said.

This amount was paid to Nixon in December 2008, and he will be acquiring RBC common shares for a value equivalent to the net proceeds of this compensation, the bank added.

“In light of the current state of global markets and the challenges faced by so many in Canada and around the world, I feel this decision is right for both me and the bank,” Nixon said in a statement.

Meanwhile, Bill Downe, president and CEO of BMO Financial Group, has decided to forego both his mid-term and long-term compensation of $4.1 million for 2008, the bank said Monday.

As previously disclosed in BMO’s Proxy Circular, Downe had requested that part of his mid-term compensation (valued at $550,000) be withdrawn from his compensation package.

“While BMO delivered solid financial performance in 2008 — with close to $2 billion in net income — my decision to forego this compensation is a result of my reflection upon the current economic environment,” said Downe.

Of the $1.4 million in short-term compensation awarded to Downe for 2008, Downe has previously elected to receive 25% of the award in BMO share units. Downe said he will invest the remainder in the bank’s common shares.

Scotiabank also gave less in salary and bonus to chief operating officer Sarabjit Marwah, chief risk officer Brian Porter, chief financial officer Luc Vanneste, and vice chairman Robert Brooks.

Royal cut the pay packages for CFO Janice Fukakusa; Jim Westlake, the head of international banking and insurance; Chuck Winograd, who retired in October as head of the bank’s securities arm; and Barbara Stymiest, Royal’s COO.

IE